Intellectual property rights and innovation in developing countries |
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| Affiliation: | 1. Department of Economics, University of Colorado at Boulder, Boulder, CO 80309, United States;2. Department of Economics, San Diego State University, United States;1. University of Bradford, Bradford University School of Management, Emm Lane, Bradford, West Yorkshire BD9 4JL, UK;2. Uppsala University, Sweden;3. University of Leeds, Centre for International Business (CIBUL), Leeds University Business School, University of Leeds, Leeds, West Yorkshire LS2 9JT, UK;4. Cranfield University, Cranfield University School of Management, Cranfield University, Cranfield, Bedfordshire MK43 0AL, UK;1. University of Colorado, Boulder, USA;2. Zhejiang University, China;3. Lingnan University, Hong Kong;1. Department of Economics, UCB 256, University of Colorado at Boulder, Boulder, CO, 80309-0256, USA;2. Department of Economics, Hepburn Hall 205, St. Lawrence University, Canton, NY, 13617, USA;3. Department of Economics, PO Box 413, University of Wisconsin at Milwaukee, Milwaukee, WI, 53201-0413, USA |
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| Abstract: | This paper studies intellectual property rights (IPRs) and innovation in developing countries. A model is developed to illustrate the trade-off between imitating foreign technologies and encouraging domestic innovation in a developing country's choice of IPRs. It is shown that innovations in a developing country increase in its IPRs, and a country's IPRs can depend on its level of development non-monotonically, first decreasing and then increasing. Empirical analysis, with a panel of data for 64 developing countries, confirms both the positive impact of IPRs on innovations in developing countries and the presence of a U-shaped relationship between IPRs and economic development. |
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